Because of portfolio effect,the most significant factor related to the risk of any investment is

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The portfolio effect suggests that the risk of an individual investment can be offset by combining it with other investments in a portfolio. Therefore, the most significant factor related to the risk of any investment is its effect on the risk of the portfolio. This means that investors need to consider how each investment will contribute to the overall risk and return of the portfolio, rather than just focusing on the individual risk of each investment. The standard deviation and systematic risk are also important factors to consider, but they are secondary to the portfolio effect.

Because of Portfolio Effect,the Most Significant Factor Related to the Risk